PUTRAJAYA: After an outcry over the huge hikes in levy for foreign workers, the Government has agreed to put the hike on hold and hear out the employers before making a final decision after the Chinese New Year.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the Government was aware of the employers’ concerns and would listen to what they had to say on this issue.
Representatives from the Malaysian Employers Federation, manufacturers, guilds associations and non-governmental organisations will be called to discuss the new policy, which was introduced following the recalibration of Budget 2016.
“We want to hear their views, but let us be reminded that the new move would contribute RM4bil to the country’s coffers,” said Dr Ahmad Zahid.
The new rate came into effect from Feb 1. While foreign workers were previously charged different rates based on the sectors they worked – manufacturing, construction, service, plantation and agriculture – there are only two categories now.
Of the two categories, one is for the manufacturing, construction and service sector where the levy per foreign worker is RM2,500.
The other is for workers in plantation and agriculture and the levy is RM1,500.
The new rates were a huge increase from the earlier RM1,250 for those in the manufacturing and construction sectors.
Those in the plantation sector paid RM590 while workers in the agriculture sector were paid RM410.
Those in the service sector previously paid RM1,850 but will now have to pay RM2,500.
The levy for foreign domestic workers remains at RM410.
Asked if there was a possibility that the new rates could be lowered, the Deputy Prime Minister said: “We will look into it. The Prime Minister called me when I was in Beijing and asked me to look at certain aspects of the policy, including the rate and its validity period.”
Speaking to reporters after attending the Home Ministry’s monthly assembly, Dr Ahmad Zahid said the online re-hiring programme – to start on Feb 15 – would be a boon for employers.
This, he said, was because they would not need to engage agents or middlemen to get their illegal foreign workers registered.
“With the online re-hiring programme in place, we expect to get more requests for work permits for foreign employees and this spells more income for the Government.
“At the same time, we will also be able to get the closest figure as to how many foreigners are being employed illegally in the country.”
The online registration programme was another measure announced by Prime Minister Datuk Seri Najib Tun Razak in the recalibration of the Budget.
According to the ministry’s estimates, there are about two million foreigners currently being employed illegally.
Dr Ahmad Zahid, who is also Home Minister, said the online re-hiring programme would be for three months and any extension would be determined later.
